Some may be aware that one of the largest providers of long term care insurance, Genworth Financial, is currently amid a merger with China Oceanwide. Genworth Financial Group and China Oceanwide Holdings Co. Ltd. recently agreed to extend the deadline of their merger until July 1, 2018 in hopes of achieving government approval. The merger was announced in 2016 when Oceanwide offered to pay $2.7 billion for the American insurance company. This past March, the Australian regulators approved the deal moving it a step forward in addition to previous approvals from regulators in the states of South Carolina, North Carolina, Virginia, and Vermont.
The extension agreement allows both company’s additional time to address regulatory issues and define a date either party can terminate the agreement without penalty. Currently, the Committee on Foreign Investment in the United States (CFIUS) agreed to accelerate their review over the next 45 days. Their concern is around data security and privacy which both companies believe they have mitigated by utilizing a U.S. based third-party data security company to house and control all data.
The merger needs clearance from the CFIUS, but also regulatory approvals in the U.S., China, and other international jurisdictions where Genworth has a presence.
At LTC Consumer, we specialize in professional long term care planning for individuals and families. Our LTC Specialists shop the market to find the best deal for our clients. As the market changes, we’ll keep you updated with all the details you need to know.